Deals and Transactions Press Release
TSSP Acquires Distressed Portfolio from Credit Suisse
The Credit Suisse distressed portfolio purchased by TSSP is comprised of over 270 instruments across asset types and geographies relating to approximately 170 companies.
As previously disclosed, the Credit Suisse Global Markets division has accelerated its strategic implementation of a business model that is better aligned to the overall Group strategy with lower risk appetite and reduced volatility, for the benefit of their core clients and shareholders. This transaction reduces Credit Suisse's overall distressed credit exposure by $1.24 billion. In addition to the $99 million of writedowns disclosed in respect of the overall distressed portfolio on March 23, this transaction has resulted in a further charge of approximately $100 million, the bulk of which will be reflected in Credit Suisse's 1Q results. These results are due to be announced on May 10 and a full update on Credit Suisse's distressed credit exposure will be provided at that time.
David Miller, co-head of Credit Suisse's Credit Product business commented: "The successful completion of this transaction with one of our highly-valued clients demonstrates the significant progress we are making on our strategic goals."
Clint Kollar, a TSSP partner said: "The Credit Suisse distressed credit desk has been a long-time trusted partner to TSSP globally and we are pleased they selected TSSP to help it quickly execute on its strategy. This transaction leverages our global team's ability to provide speed, certainty and value to financial institutions and other sellers in complex situations. The portfolio we are acquiring has deep, long-term potential and fits well with our patient and flexible capital."
Contemporaneous with the transaction, Bob Franz, Credit Suisse's Head of U.S. Credit Trading, and Ken Hoffman, the bank's Head of Distressed Research & Trading, will lead the formation of a new asset management firm to assist in servicing these assets and other similar assets in the future.